Crista Huff

Stock number one is: 

Applied Materials Inc., (SYMBOL: AMAT) and the headline says: Use Flat October Quarter Guidance to Buy Ahead – Citi Research

Semi-conductor equipment maker Applied Materials announced third quarter earnings a fraction below Street estimates, and named President Gary Dickerson as the new CEO.

"Applied Materials’ earnings are expected to fall this year, then increase rapidly.  S&P and CitiGroup reiterated a rosy future for the company in research reports today.  The dividend yield is 2.5% and the 2014 PE is 14, in a normal range of 14-32.

The shares appear to be completing a long-term trading pattern, and preparing to climb toward resistance at $20.  This undervalued but volatile stock could appeal to traders and most stock investors."

Our Ransom Note trendline says:  BUY APPLIED MATERIALS.

AMAT Chart

AMAT data by YCharts

Stock number two is: 

Sanofi, (SYMBOL: SNY) and the headline says: Earnings Down, Outlook Lowered at Sanofi  -- Zacks

French healthcare company Sanofi posted second quarter earnings way below consensus.  Zacks reports that problems include “generic competition, European pricing pressure and … inventory mismanagement in Brazil.”  Patented drugs continue to show strength.  Zacks and S&P are bullish on Sanofi’s new drug pipeline to treat M.S., diabetes, and colorectal cancer.

Earnings are projected to fall 13% or more this year, then rebound next year.  The annual June dividend yield is in the 2-3% range, and the PE is 15.

Sanofi’s stock broke past long-term resistance at $50 in March, and is trading between $50 and $56.  Value investors should jump in below $52.

Our Ransom Note trendline says..... HOLD SANOFI. 

SNY Chart

SNY data by YCharts

Crista Huff

Crista Huff is a retired stockbroker from a NYSE member investment firm. She writes about market-timing at Goodfellow LLC and is active politically.
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